StockMarketWire.com - Russia-focused oil company PetroNeft said production volumes had improved in July amid a strong performance from its Lineynoye field.

The company's production from Licence 61, of which it owned 50%, had risen 7.8% in July on-year to 1,589 barrels per day.

Production at Lineynoye was over 20% ahead of July 2019 levels after an optimising of its waterflood program.

The Sibkrayevskoye field, meanwhile, continued to perform well, with production currently averaging 246 barrels per day, PetroNeft said.

'It is extremely encouraging to be able to begin seeing the benefits of the field optimisation programs which started last year with extensive but low-cost data gathering across our well portfolio,' chief executive David Sturt said.

'This data led approach allows to achieve greater returns from our investments.'

'Being able to stabilze and even increase production without deploying significant capital to expensive drilling is particularly good news and demonstrates the future potential of these fields.'

'Looking forward, we are planning to continue improvements which in addition to optimising our water floods may involve techniques such as re-fracking and well re-entries.'

'We believe that these low cost initiatives can deliver real production benefits.'




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